Dan Caulfield, 32, runs what many would deem a successful
venture: $4 million in 1998 sales with 60 employees. So when the
founder of Hire Quality Inc., a Chicago firm that matches current
and former military personnel with prospective private-sector
employers, announced he was going to dramatically change his
business model, he expected to catch some flak. But one criticism
bothered Caulfield the most: "You're not
focused!"

"A year ago when people would say I was unfocused [about my
business model], I took it very personally," Caulfield says.
"I'd think to myself, `You're not as smart as I am.
You obviously don't understand what I'm
saying.' "

Approximately a year later, someone Caulfield deeply respects
and trusts confronted him with the same criticism. This time, the
entrepreneur listened. "I came back from that meeting and went
directly to my business plan and worked on it for several hours,
trying to simplify and clarify it. That was one of those moments in
life where I finally said, `They're right. I have to go back
and fix something.' "

No matter how successful you are, you'll eventually face
criticism, whether from customers, other entrepreneurs, family and
friends, or even employees. How do you effectively handle criticism
and keep yourself and your company moving forward? Here are five
tips:

1. Listen openly. "When people say something to me
that I don't like to hear," Caulfield says, "I
immediately stop, take a deep breath and try to find out why they
said it. [The criticism] might not be true, but what's more
important is that the person perceived it as true. Therefore, I
need to find out how I can change the person's perception or
address the facts [if it is] true."

2. Don't take it personally. It's easy to want to
vindicate yourself when you feel unjustly criticized by, say, a
customer. But no matter how off-base a customer's complaint
might be, resist the temptation to lash back. Otherwise, you risk
losing that client--and the potential referrals he or she brings to
the relationship. Who knows? The person could be going through a
tough divorce or dealing with a loved one's terminal illness.
Cut people some slack.

3. Get a second opinion. Not everyone has your best
interests in mind. Some people, for example, will deride you out of
envy. When you sense this is the case, don't get defensive. If
you have to, force a smile and say "Thank you for your
feedback. I'll take some time to evaluate what you said and see
if I should make any changes based on your suggestions." This
will help you maintain your composure. Then consult someone you
trust to see what part, if any, of the criticism is valid.

4. Ask yourself "What can I learn from this
criticism?" For example, suppose a customer complains that
the late-payment policy outlined in your contract is grossly
unreasonable. If you take the posture of wanting to learn from this
criticism, you may discover that other customers are turned off by
the policy as well, revealing a problem that, if ignored, could
hurt your sales in the long run.

5. Get used to the heat. If your goal is to avoid or
suppress criticism, you'll consistently feel discouraged,
angry, frustrated and ready to give up your entrepreneurial dream.
Instead, make peace with the fact that as long as you're the
Big Kahuna, you're going to be a prime target for criticism.
When people point out that you're not perfect, take solace in
the knowledge that you're in good company.

Fire Drill!

When you find yourself under fire, for whatever reason, here are
three quick tips for taking the heat without getting burned:

1. Stop! Take a deep breath and count for as long as
it takes to calm yourself down. Realize that a calm response will
help you defuse the situation more quickly than a vigorous
defense.

2. Drop! Put down your defenses. Listen openly and
ask questions to understand the possible root causes of the
criticism. You may learn valuable lessons that benefit you and your
business--if you look for them.

3. Roll! When you roll with the punches, you're
less likely to get hurt by them. Remember, all entrepreneurs have
shortcomings. Mature business owners admit this and take criticism
in stride, often laughing at themselves in the process.

Sean M. Lyden (seanlyden@mindspring.com) is
the principal and senior writer of The Professional Writing Firm
Inc., a Kennesaw, Georgia, company that specializes in ghostwriting
articles. Lyden writes frequently on motivation, management and
marketing issues.